To reduce interest rates of deposits for certain some terms in Vietnam from June 19, 2023

To reduce interest rates of deposits for certain some terms in Vietnam from June 19, 2023

According to Decision 1124/QD-NHNN, the maximum interest rates of deposits in Vietnam Dong (VND) of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign banks branches according to Circular 07/2014/TT-NHNN dated March 17, 2014 are as follows:

- The maximum interest rate of demand deposits and deposits with a term less than 1 month is 0,5%/year.

- The maximum interest rate of deposits with a term from 1 month to less than 6 months is 4,75%/year.

- People's credit funds and microfinance institutions shall apply the maximum interest rate of 5,25%/year with respect to deposits with a term from 1 month to less than 6 months.

Meanwhile, according toDecision 951/QD-NHNN :

- The maximum interest rate of demand deposits and deposits with a term less than 1 month is 0,5%/year.

- The maximum interest rate of deposits with a term from 1 month to less than 6 months is 5,0%/year.

- People's credit funds and microfinance institutions shall apply the maximum interest rate of 5,5%/year with respect to deposits with a term from 1 month to less than 6 months.

Note: Interest rates of term deposits in VND of organizations and individuals at credit institutions and foreign bank branches made before before May 25, 2023 shall continue to be applied until these term deposits reach their maturity dates; in case these term deposits are not withdrawn at their maturity dates, the interest rates of these term deposits shall be calculated according to Decision 1124/QD-NHNN.

Decision 1124/QD-NHNN takes effect from 19/6/2023 and replaces Decision 951/QD-NHNN dated 23/5/2023.

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